TSMC(US:TSM) Xin Lang Cai Jing·2026-01-16 04:40Core Viewpoint - The A-share market showed mixed performance with major indices declining slightly, while the semiconductor sector surged due to positive earnings from TSMC, indicating strong demand driven by AI applications [1][8]. Market Performance - The three major A-share indices closed lower: Shanghai Composite Index down 0.22% at 4103.45 points, Shenzhen Component Index down 0.1%, and ChiNext Index down 0.01% [1]. - The total market turnover reached 200.63 billion yuan, an increase of 11.11 billion yuan from the previous day, with over 3300 stocks declining [1]. Semiconductor Sector - TSMC's earnings report exceeded expectations, leading to a rise in semiconductor and photolithography sectors, with stocks like Blue Arrow Electronics and Baiwei Storage increasing over 10% [1]. - Various semiconductor ETFs saw significant gains, with the Penghua Sci-Tech Semiconductor ETF rising by 4.27% and other related ETFs also showing strong performance [3]. TSMC Financial Outlook - TSMC reported a projected net profit growth of 35% year-on-year for Q4 2025, with operating margin expectations between 54% and 56%, surpassing market estimates [8]. - The company anticipates capital expenditures to reach up to 56 billion USD in 2026, a 37% increase from 40.9 billion USD in 2025, marking a historical high [8]. AI and Semiconductor Demand - The demand for AI servers is significantly higher than for traditional servers, consuming 53% of global memory production capacity, leading to a "super bull market" in the storage sector [9]. - The semiconductor industry is experiencing a strong recovery driven by AI computing power, with a cumulative increase of 33.5% in the A-share electronics sector year-to-date [10].